RE: In the blue.....22 Oct 2021 22:14
great to see that close above £14 which was important from a short-term speculators perspective. I think this could really fly if the price of gold breaks above its current trading range. I remember a few years back that oil closed at the lowest point in a downtrend on new years eve and then from the first trading session in January it began a strong bull trend. I think the market re-evaluated the fundamentals when everyone got back to their trading desks after the xmas period. I really think we will see something similar in the precious metal markets.
I think the whole world knows that the Fed is going to announce their tapering in November so this will be priced in to the gold price. I think that gold will actually break higher when they finally announce the taper. As always, the gold spot price reflects what is happening with supply/demand now but miners are more forward looking as they price-in what it likely to happen with the spot price in the future, I think few appreciate this. So we could see further upside in POLY before that Fed announcement.
I am not one of these people that is blindly bullish my own positions. I would happily see POLY go back down to the £12 trading range so I can buy more but I am not too confident that this will happen any time soon